The major advantage of a logit model over a linear probability model is that the predicted values of y are always between ________.
A) −1 and 1
B) 0 and 2
C) 0 and 1
D) −1 and 0

Question

Quizplus · Accepted Answer

The major advantage of a logit model over a linear probability model is that it guarantees predicted values of y to be between 0 and 1, which is essential for modeling probabilities. The linear probability model, on the other hand, may produce predicted values that are outside this range, which makes it less desirable for modeling probabilities. Option A and D do not match with the predicted values of a logistic model, and option B has an incorrect range.

The Major Advantage of a Logit Model Over a Linear